Unemployment’s Steady Climb

photo credit: AdrianDC

America’s struggling economy has led to layoffs and less hires, causing the nation’s unemployment rate to soar to its highest rate in four years. In fact, in the first seven months of 2008, more than 463,000 Americans have lost their jobs. Many are unable to find adequate replacements.

In addition to higher unemployment, companies are showing huge losses. General Motors, for example, posted a mind-numbing $15 billion quarterly loss, and added that its sales have fallen more than a quarter since 2007. Construction projects have seen a 0.4 drop in just June alone. Manufacturers struggled to make any profit at all in July. The housing market continues its steady decline. All in all, the economy is battling for survival, and America’s workers are the casualties of war.

Unfortunately for the United States, more layoffs are expected, and jobs will become increasingly hard to secure. It’s a vicious cycle, however, as rising unemployment forces Americans to spend less, further affecting an already-hurting economy. Such predictions are reflected everywhere, even in the stock market, where the Dow Jones fell 51.70 points in reaction to the news.

The Federal Reserve, not eager to fuel the fire, will likely hold interest rates steady, as it decides how to manage a weak economy and inflation.